What is the meaning of Strengthening?

Strengthening is a hedging or risk management term used to describe the relative gain of value between the underlying market and the hedge vehicle. It suggests that the cash or spot commodity or market is becoming more valuable relative to the futures or forward as defined by the basis.

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APABarry Goldsmith. (2010). strengthening. Retrieved September 26, 2026, from http://smartdefine.org/strengthening/definitions/1164368
ChicagoBarry Goldsmith. 2010. "strengthening" http://smartdefine.org/strengthening/definitions/1164368 (accessed September 26, 2026).
HarvardBarry Goldsmith 2010, strengthening, Smart Define, viewed 26 September, 2026, <http://smartdefine.org/strengthening/definitions/1164368>.
MLABarry Goldsmith. "strengthening" 21 October 2010. Web. 26 September 2026. <http://smartdefine.org/strengthening/definitions/1164368>
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